Brannigan
Brannigan Foods
Strategic Marketing Planning for the Soup Division
Brannigan Foods Soup Division is a 100 year old company with mature products which account for 40% of the whole soup market and it is the most significant division of the Brannigan Foods group. The most important category is the RTE soups which account for 78% of total sales. (Exhibit 2) Other products include Low sodium RTE “Heart Healthy”, dry soups and mixes and private label and Annabelle’s fast and simply. Annabelle’s was a soup company acquired 5 years ago in order to add healthier sups, dry soups and fast to the company’s portfolio, a growing trend in the market.
In terms of costumer perception of Brannigan comparing with competition, Brannigan’s falls behind in the following:
Health trends
Diet claims
Convenience offerings
Flavors-especially popular regional ones
Seasonal products outside cold weather
Retailers perceive Brannigan to be:
-Category leader
-not innovative
-less profitable than store brands and competition
Over the past 3 years the results of the division have been decreasing and there are several reasons behind this:
The whole soup industry has been declining for several years. The largest and most loyal segment of soup consumers, the baby boomers, which account for 20% of American population and are the main target, have been showing increasing concerns with processed food and high sodium content shifting to healthier alternatives.
Increasing trend within working mothers who tended to prefer “convenience”.
Bert Clark, vice-president and general manager of Brannigan Foods’ Soup Division needs to take action and present a plan to senior management to go back to growing sales within the division and increase profits by 3% next year, reversing the 1-2% declining turnover and 2-3% declining volume. With this in mind he has asked his key directors to submit a plan of action independently and now he has to decide which of the 4 proposals he will
Strategic Marketing Planning for the Soup Division
Brannigan Foods Soup Division is a 100 year old company with mature products which account for 40% of the whole soup market and it is the most significant division of the Brannigan Foods group. The most important category is the RTE soups which account for 78% of total sales. (Exhibit 2) Other products include Low sodium RTE “Heart Healthy”, dry soups and mixes and private label and Annabelle’s fast and simply. Annabelle’s was a soup company acquired 5 years ago in order to add healthier sups, dry soups and fast to the company’s portfolio, a growing trend in the market.
In terms of costumer perception of Brannigan comparing with competition, Brannigan’s falls behind in the following:
Health trends
Diet claims
Convenience offerings
Flavors-especially popular regional ones
Seasonal products outside cold weather
Retailers perceive Brannigan to be:
-Category leader
-not innovative
-less profitable than store brands and competition
Over the past 3 years the results of the division have been decreasing and there are several reasons behind this:
The whole soup industry has been declining for several years. The largest and most loyal segment of soup consumers, the baby boomers, which account for 20% of American population and are the main target, have been showing increasing concerns with processed food and high sodium content shifting to healthier alternatives.
Increasing trend within working mothers who tended to prefer “convenience”.
Bert Clark, vice-president and general manager of Brannigan Foods’ Soup Division needs to take action and present a plan to senior management to go back to growing sales within the division and increase profits by 3% next year, reversing the 1-2% declining turnover and 2-3% declining volume. With this in mind he has asked his key directors to submit a plan of action independently and now he has to decide which of the 4 proposals he will